Alaska Air Group provides passengers and cargo air transportation services primarily in the United States. The company operates through Alaska Mainline and Alaska Regional segments. The company was founded in 1932 and is based in Seattle, Washington.
ALK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Alaska Air Group Inc. To summarize, we found that Alaska Air Group Inc ranked in the 84th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Alaska Air Group Inc ended up being:
The company has produced more trailing twelve month cash flow than 86.56% of its sector Industrials.
Alaska Air Group Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 5.68% of tickers in our DCF set.
ALK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 5.68% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BOMN, SPR, CBZ, ATI, and ASR can be thought of as valuation peers to ALK, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.